Spreadsheets vs ERPWhere does the balance lie?

1/34

Introductions &

Background

2/34

3/34

Accountant’s Perspective

We live in parallel universes

Engineer’s Perspective

4/34

Accountant’s Perspective

We live in parallel universes

Pre ERP - Chaos on the Shop Floor

5/34

MRP makes a difference

6/34

We begin to make wonderful things

7/34

And start counting the cost...

8/34

€

ERP - breaking down data barriers

9/34

Board

FinanceHRProductionSales

ERP vision - single core, multiple views

10/34

Courtesy: NetSuite

Domestic Broadcast Satellite Company:• 18 manufacturing sites across Europe• Long lead-time, hi-tech raw materials• Fluid customer base and demand• Management by spreadsheets• OUT OF CONTROL

ERP - great when it works

11/34

Domestic Broadcast Satellite Company:• 18 manufacturing sites across Europe• Long lead-time, hi-tech raw materials• Fluid customer base and demand• Management by spreadsheets• OUT OF CONTROL

ERP - great when it works

Results - expected:• procurement & stock optimised• detailed cost analysis enabled• order fulfilment

12/34

Domestic Broadcast Satellite Company:• 18 manufacturing sites across Europe• Long lead-time, hi-tech raw materials• Fluid customer base and demand• Management by spreadsheets• OUT OF CONTROL

ERP - great when it works

Results - unexpected:• ‘You’ve ruined my job’• Selling at a loss• Stock write-offs

Results - expected:• procurement & stock optimised• detailed cost analysis enabled• order fulfilment

13/34

‘ERP’ - disastrous when it doesn’t work

UK government scraps the £12 billion

National program for IT in the NHS

SAP project woes impact Ingram Micro's

profits -- twiceEpicor sued by customer over ERP project that

turned into a 'big mess'

Over 80% of corporate programmes ‘fail’ to deliver - why would you want to be the next?

Marin County accuses SAP, Deloitte Consulting

of a racketeering scheme

14/34

Dan BricklinVisicalc

1979

Lotus 123For PC1983

MsoftExcel1985

Summarising our two paths

ManufacturingResourcePlanning

MaterialsRequirements

PlanningInventory

Control

EnterpriseResourcePlanning

1970s

1960s

1980s

1990s

15/34

Spreadsheets and ERP - an uneasy alliance

time

Spre

adsh

eet c

ount

Backgroundcount

ERP 1Facelift 2

ERP 1Facelift 1ERP

Programme 1

ERPScope/Complexity

ERPProgramme 2

What starts off as a short-term ‘bridge’ often becomes a long-term dependency

16/34

Spreadsheets vs ERPSo where does the balance lie?

17/34

18/34

Spreadsheets vs ERPDoes it just come down to perference?

Spreadsheet vs Enterprise

Key perceptions:• Single version of the truth• Everyone works in the same way• Corporate control• Knowledge-sharing is enabled• Cost savings will occur

Key perceptions:• Personal control & power• Responsive & agile• Visibility of the path to the answer• Instant gratification• No – or low – cost

?19/34

Spreadsheet vs Enterprise

Hidden issues:• Project cost and failure• Inertia and delays• High cost of ownership• Lack of skills & competence• Corporate disobedience

Key perceptions:• Single version of the truth• Everyone works in the same way• Corporate control• Knowledge-sharing is enabled• Cost savings will occur

Key perceptions:• Personal control & power• Responsive & agile• Visibility of the path to the answer• Instant gratification• No – or low – cost

Hidden issues:• Corporate liability• Addictive• True cost of ownership• Barrier to collaboration• WYSIATI

?20/34

Living with Spreadsheets – a CEO’s perspective

• Simple errors are rife – I make them all the time!• Skills & competence are unchallenged• Inheritance is common - both intra and inter organisation• Individual time-wasting in spreadsheet world• One-dimensional thinking in a box• Competing ‘voices’ across the organisation• ‘Straight-to-spreadsheet’ thinking has increased• Absence of supporting information – the story

21/34

Living with ERP – a CEO’s perspective

• Incredibly powerful and comprehensive solution set• Enables and promotes team and enterprise thinking• Single version of the ‘truth’ flowing through the organisation• Sound and reliable decision making• Takes far too long to implement• Programme ‘Failure’ a likelihood• Cost of ownership high for unpredictable returns• Corporate disobedience regularly undermines potential

22/34

Big Data

23/34

Spreadsheets and ERPEnsuring Solid Foundations

24/34

Spreadsheets and ERPEnsuring Solid Foundations

25/34

Spreadsheets and ERPBridging the gaps

26/34

?

±

P R E S E N T

?

Spreadsheets and ERPAnalysing the Past

27/34

±?

±

PAST

P R E S E N T

?

?

Spreadsheets and ERPAddressing the Future

28/34

±?

?

±

PAST

FUTURE

P R E S E N T

?

?

Spreadsheets vs ERPSo where does the balance lie?

Spreadsheets: Temporary/Short-term Dynamic environment Innovation & creativity Simple data sets Static data Localised use Decision support

ERP: Medium to Long Term Stable environment Repetitive, heavy lifting Complex interactive data sets Real-time process/data flows Pan-organisational use Decision execution

29/34

Spreadsheets vs ERPSo where does the balance lie?

Together, we can :•accurately evaluate the past•effectively manage the present•confidently address the future

30/34

Spreadsheets: Temporary/Short-term Dynamic environment Innovation & creativity Simple data sets Static data Localised use Decision support

ERP: Medium to Long Term Stable environment Repetitive, heavy lifting Complex interactive data sets Real-time process/data flows Pan-organisational use Decision execution

Spreadsheets and ERPwhere does the balance lie?

32/34

THANK YOU!

Draft for Discussion only

Further thoughts?

Call: +44 (0) 7989 156 555Email: jon.kidd@toutsuite.comTwitter: @toutsuite4bizBook: Scheduled for publication Q3/2014

33/34